Determine the Coefficient of Variation for the Following Annual Cash $\text { Cash Flow }$

question 25

Multiple Choice

Determine the coefficient of variation for the following annual cash in flows from an investment project:
$\text { Cash Flow }$
$$\begin{array} { c c } \text { (E20) F0\% } & \text { Prabability } \\\hline 2,000 & .10 \\2,500 & .20 \\3,000 & .30 \\3,500 & .20 \\4,000 & .20\end{array}$$

• A)$624.50
• B)125.8
• C)0.201
• D)cannot be determined

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Definitions:

Owner's Equity

The residual interest in the assets of the entity after deducting liabilities, representing what the owners or shareholders own outright in the company.

Liabilities

Financial obligations a company owes to outside parties.

Assets

Resources owned by a business which are expected to provide future economic benefits, such as cash, inventory, property, and equipment.

Liabilities

Financial obligations or debts owed by a business to others, which must be settled over time through the transfer of economic benefits.